FRANCHISOR'S OBLIGATION TO EXPOSE ACCURATE AND COMPREHENSIVE PRE-CONTRACTUAL INFORMATION

Unequal bargaining power of parties to a franchise contract and their unequal access to information that may be effective in determining the consideration of a contract; has caused different legal systems impose obligations to franchisor to poise the contractual balancing. Commitment to expose accurate and comprehensive pre-contractual information about all aspects related to franchise is the most important obligation in order to achieve the above objective. Judicial decisions of leading countries in franchising services show that an important part of contractual disputes related to this commitment. This article also analyzes purview and remedies of the violation of that obligation. In this regard, nullity, relative nullity and adaptation of contract are discussed. Acceptable theory in Iranian civil law is analyzed.